Europe Van Market Size

Europe Van Market Analysis

The Europe Van Market size is estimated at USD 60.51 billion in 2024, and is expected to reach USD 75.99 billion by 2029, growing at a CAGR of 4.66% during the forecast period (2024-2029).

• Amid the COVID-19 pandemic, the demand for vans in Europe witnessed a significant decline, primarily attributed to a disruption in the supply chain, a halt in manufacturing activities, and reduced demand from consumers due to a decline in spending power.
• Over the long term, factors like increasing regulations on vehicle emissions, advancement in vehicle safety, the introduction of driver-assist systems in vehicles, and rapidly growing logistics in the retail and e-commerce sectors have been significantly driving the demand for new and advanced commercial vehicles in the market.
• The e-commerce industry across Europe has been witnessing a consistent rise over the past few years, primarily attributed to customer inclination toward online shopping and the availability of customer-friendly mobile applications for the online purchase of a variety of products, including industrial goods. This is likely to increase in demand for vans for the last-mile delivery of goods and commodities. Europe's E-commerce industry witnessed about a 10% increase in revenue in 2021 as compared to 2020.
• Road transportation plays a vital role in the transportation sector across Europe. For instance, according to Eurostat, road transport accounts for approximately 75% of inland freight transportation inside the EU, or around 1,750 billion metric ton-kilometer. This ratio can reach 90% or more in several European nations. The rising business partnership between the original equipment manufacturers and parcel service providers across the region is witnessing major growth in the market.
• Vans find usage in several applications and segments of the European economy, i.e., construction, postal and courier services, law enforcement, and light duty passenger transport applications. The demand has significantly grown owing to the logistics and last-mile delivery needs of e-commerce giants like Amazon.
• For instance, in January 2022, BrightDrop, a subsidiary of General Motors, partnered with FedEx to supply vans to the latter for home delivery service. Further, European governments are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, pushing them to invest in developing electric Vans.
• Meanwhile, low-emission zones are driving the market. The transition towards electric mobility further increases the demand for LCVs, owing to the faster adoption of electric vehicles by major companies. Large-scale manufacturers are also offering several products, in partnerships with other major companies, to transform the existing majority of ICE LCVs to electric over the forecast period.